At the time of writing, the ASX lithium stock is up an impressive 32% to 18.5 cents.

This latest gain means that the company's shares are now up 200% since this time last week.

Why is this ASX lithium stock on fire?

Investors have been fighting to get hold of the company's shares since the release of very promising exploration results from the Andover West project in the West Pilbara region.

This project comprises over 100km2 of prospective ground located approximately 40km east-southeast of Karratha and south of the Azure Minerals Ltd (ASX: AZS) owned Andover LCT Pegmatite project, which was recently acquired by Sociedad Química y Minera de Chile (NYSE: SQM) and Hancock Prospecting.

The release reveals that the ASX lithium stock has identified a large (~ 1.6km x 1km) stacked pegmatite swarm at Andover West. It also notes that there was a highly anomalous Li Soil trend (peak 325ppm Li2O).

These anomalous lithium soil trends are along strike and 1.7km from the Raiden Resources Ltd (ASX: RDN) lithium pegmatite discovery that reported 3.8% Li2O rock chip.

Management also notes the fertility of pegmatite swarm, highlighted by extensive background Li soil anomalism (>100ppm Li2O).

An Andover Heritage Clearance Survey is now scheduled to be undertaken this month, and planning for a drill program is also underway. Field teams have been mobilised to the Pinderi Hills JV, and sampling is underway.

Management commentary

The ASX lithium stock's executive chairman, Thomas Reddicliffe, appeared to be delighted with the exploration update. He commented:

We are excited not only by the recognition of this large pegmatite swarm which lies adjacent to Azure minerals Andover project but also because we can now focus in on the lithium fertile zones within these broad pegmatite packages.

Reddicliffe believes this update may have only "hit the tip of the iceberg" and is looking forward to digging deeper into the Andover West project in the coming months. He adds:

We believe that we may have only hit the tip of the iceberg with these lithium fertile zones within the pegmatite packages and with their shallow dips we have the opportunity to explore for higher grades down dip. Being along strike and in proximity to the Raiden lithium pegmatites we are optimistic of our chances and keen to do some exploratory drilling.

Errawarra Resources shares are now up over 350% on a monthly basis.

The post 'Tip of the iceberg': Why this ASX lithium stock has exploded 200% in a week appeared first on The Motley Fool Australia.

Among today's stand-out performers are two ASX shares you've probably never heard of — until now. (Glad we could help.)

Let's find out why these nano-cap shares hit it out of the park today.

The ASX share up 43% for no reason

Errawarra Resources Ltd (ASX: ERW) finished the session on Tuesday up 43.5% to 16.5 cents a share.

The nano-cap ASX mineral explorer blasted higher today on no news whatsoever.

The last piece of price-sensitive news relating to this ASX share came on 3 August.

That was an update on exploration activities at its Andover West project in the Pilbara and the Errabiddy project in the Gascoyne region.

Errawarra said it has completed its reconnaissance sampling at the Errabiddy graphite project, with a second program of ground EM surveys now underway.

It also reported that rock chip samples from the Andover West nickel-copper project indicate geochemical affinity to lithium-cesium-tantalum (LCT) pegmatites.

Errawarra Resources has a market capitalisation of $6.95 million.

Insurance stock up 32% on takeover news

Ensurance Ltd (ASX: ENA) is a holding company in the insurance industry. It does insurance brokerage and underwriting, and offers IT solutions. 

The ASX share closed at 27 cents today, up 32.5% after the company announced its takeover by PSC Insurance Group Limited (ASX: PSI).

PSC Insurance will acquire all Ensurance shares by way of scheme of arrangement.

Shareholders will receive approximately 0.056 new PSC shares for each Ensurance share.

The transaction values Ensurance at $25.2 million and each of its ASX shares at 28 cents.

This represents a 40% premium to the closing Ensurance share price of 20 cents yesterday.

Ensurance chair Tony Leibowitz said:

This transaction delivers a healthy premium to the current market price of ENA shares, and the scrip consideration will allow ENA shareholders to retain exposure to the continued growth and development of the business.

The post 2 ASX shares you've never heard of rocketing over 30% on Tuesday appeared first on The Motley Fool Australia.

The Errawarra Resources Ltd (ASX: ERW) share price exploded 73.9% from 11.5 cents to 20 cents today. Now, the company's share price has pulled back to 18 cents, a 52% gain on yesterday's close. In contrast, the S&P/ASX 200 Materials Index (ASX: XMJ) is slipping 0.11% at the time of writing.

So what is driving investor excitement in this ASX lithium share today?

Lithium exploration update

Investors are buying up Errawarra shares after the company provided a lithium exploration update.

Errawarra is exploring the Andover West project in the north-western portion of the Pilbara Craton in Western Australia.

Today, the company revealed there was "potential for lithium-bearing pegmatites across the Andover project tenements".

Exploration teams recovered seven pegmatite samples during the first field program in May. These have been dispatched to ALS Global in Perth, with results currently pending.

A second round of work, including sampling of pegmatite targets, is now taking place. The company is also searching for nickel and copper mineralisation.

Management commentary

Commenting on the news, Errawarra chairman Tom Reddicliffe said:

We are encouraged by the presence of further pegmatites on the Andover West project tenement with sampling of targets continuing.

We are also pleased with the results achieved by our neighbour, Azure Minerals Ltd and their continued success in discovering and drilling for lithium, with the latest results being outstanding.

We are very much excited by what the Pilbara region keeps delivering to the market and we look forward to continuing with our exploration activity

Share price snapshot

Today's surge is not enough to reverse the downward swing for Errawarra Resources shares over recent months. The company's share price has dropped almost 24% since the start of 2023.

This ASX lithium share has a market capitalisation of around $10.24 million based on the latest share price.

The post 'Very much excited': Guess which ASX lithium share just soared 70% appeared first on The Motley Fool Australia.